Barclays 2015 Annual Report Download - page 89

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Remuneration structure
The remuneration structure for employees is aligned with that for executive Directors, set out in detail in the Directors’ remuneration policy which
was approved by shareholders at the 2014 AGM. A full copy of the policy can be found on the Barclays PLC website. An abridged version is at pages
108 to 116 of this Report.
Employees receive salary, pension and other benefits and are eligible to be considered for an annual bonus. Employees in some customer-facing
businesses participate in incentive plans including plans based on a balanced scorecard of performance which has good customer outcomes at its
centre. The plans also recognise how results have been achieved in line with Barclays’ Values. Some senior employees receive Role Based Pay (RBP).
Remuneration of PRA Material Risk Takers (MRTs) is subject to the 2:1 maximum ratio of variable to fixed pay. A total of 1,523 (2014: 1,277) individuals
were MRTs in 2015. Capital Requirements Regulation (CRR) disclosures on MRTs are set out on pages 159 and 160 of Barclays PLC 2015 Pillar 3
Report.
Barclays is a long standing supporter of the Living Wage. As an accredited Living Wage employer, Barclays commits to ensure that all permanent
UK employees and those UK employees of third party contractors who provide services to us at our sites, are paid at least the current London or UK
Living Wage. This is a commitment which we have also extended to all our UK employed apprentices.
Fixed remuneration
Salary Salaries reflect individuals’ skills and experience and are reviewed annually in the context of annual performance assessment. They
are increased where justified by role change, increased responsibility or a change in the latest available market data. Salaries may
also be increased in line with local statutory requirements and in line with union and works council commitments.
Role Based Pay
(RBP)
A small number of senior employees receive a class of fixed pay called RBP to recognise the seniority, breadth and depth of their
role.
Pension and
benefits
The provision of a competitive package of benefits is important to attracting and retaining the talented staff needed to deliver
Barclays’ strategy. Employees have access to a range of country specific company funded benefits, including pension schemes,
healthcare, life assurance and Barclays’ share plans as well as other voluntary employee funded benefits. The cost of providing
these benefits is defined and controlled. Gracechurch Services Corporation is used to employ US nationals seconded overseas
allowing them to retain eligibility to US benefits.
Variable remuneration
Annual bonus Annual bonuses incentivise and reward the achievement of Group, business and individual objectives, and reward employees for
demonstrating individual behaviours in line with Barclays’ Values.
The ability to recognise performance through variable remuneration enables the Group to control its cost base flexibly and to react
to events and market circumstances. Bonuses remain a key feature of remuneration practice in the highly competitive and mobile
market for talent in the financial services sector. The Committee is careful to control the proportion of variable to fixed
remuneration paid to individuals.
Bonus deferral levels are significantly in excess of PRA requirements.
The typical deferral structures include:
For MRTs: For non-MRTs: For Managing Directors in the Investment Bank:
Incentive award Amount deferred Incentive award Amount deferred Incentive award Amount deferred
< £500,000 40% Up to £65,000 0% All values 100%
≥ £500,000 60% > £65,000
Graduated level
of deferral
Deferred bonuses are generally delivered in equal portions as deferred cash under the Cash Value Plan (CVP) and deferred shares
under the Share Value Plan (SVP), each typically vesting in annual tranches over three years subject to the rules of the plans
(as amended from time to time) and continued service.
Deferred bonuses are subject to malus provisions which enable the Committee to reduce the vesting level of deferred bonuses
(including to nil) at its discretion. Events which may lead the Committee to do this include, but are not limited to, employee
misconduct or a material failure of risk management.
Clawback applies to any variable remuneration awarded to a MRT on or after 1 January 2015 in respect of years for which they are
a MRT. Barclays may apply clawback if, at any time during the seven year period from the date on which variable remuneration is
awarded to a MRT: (i) there is reasonable evidence of employee misbehaviour or material error, and/or (ii) the firm or the business
unit suffers a material failure of risk management, taking account of the individual’s proximity to and responsibility for that
incident.
Share plans Alignment of senior employees with shareholders is achieved through deferral of incentive pay into the SVP. We also encourage
wider employee shareholding through the all employee share plans. 82% of the global employee population (excluding Africa) are
eligible to participate.
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